There have been some interesting takes on this and not fully sure if there is a definitive answer.  I see both sides to the on this one and there are a number of variables that really we probably don't fully understand.
The building I am in gets LEED certification and they like to know how much paper has been shredded. On a monthly basis I have a report generated that shows how many lbs. or tons of paper is sent to the shred bin. So if we did not shred anything would they lose that LEED certification?  And if so what's the impact, higher per sq. ft. rates?
Getting to the root cause (why do we generate so much waste and how can we prevent it)?  




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